Social Housing (Regulation) Bill [HL]

Lord Foster of Bath Excerpts

2nd reading
Monday 27th June 2022 Lords Chamber

[Lord Foster of Bath (LD)]

My Lords, as others have said, the Bill is in part a response to the Grenfell Tower fire. I reiterate my condolences to the family and friends of those who died in that tragedy.

On these Benches, we welcome the Bill, although we wish it had been brought before us much earlier. After all, it stems from the Green Paper, A New Deal for Social Housing, which was published almost four years ago. Personally, I particularly welcome the removal of the serious detriment test. I also hope that the regulator and the ombudsman will have sufficient resources to carry out their enhanced responsibilities once the conflicts between their respective roles, raised by the noble Lord, Lord Young of Cookham, have been resolved.

I want to raise just three issues. The first two relate to electrical safety, which I raised during the passage of the then Building Safety Bill when I drew attention to the large number of property fires caused by faulty electrical installations or appliances, some with devastating consequences. As we have heard from the noble Lord, Lord Bourne, in the privately rented sector, it is already a mandatory requirement to have safety checks on electrical installations every five years but there is currently no similar requirement in the social rented sector despite the social housing charter specifically stating this:

“Safety measures in the social sector should be in line with the legal protections afforded to private sector tenants.”


I moved an amendment to the Building Safety Bill to try to rectify this. Sadly, it was rejected at that time by the Government on the grounds that it would lead to an added burden on the new safety regulator and would

“distract it and hinder its success”.—[Official Report, 29/3/22; col. 1403.]

However, in a remarkably short space of time, there has been a welcome change of heart, following the Government’s own working group concluding that five-yearly checks on electrical installations in social housing should take place. As the noble Lord, Lord Bourne, pointed out, consultation is already under way on the details of introducing such a measure.

So, with just one reservation, I warmly welcome Clause 10, which provides powers to the Secretary of State to do so by way of regulation. However, a careful study of Clause 10’s proposed way of achieving this—by amending Section 122 of the Housing and Planning Act 2016—reveals that the Secretary of State does not have to make any changes; merely that he may do so. Will the Minister give an assurance that, following the consultation, the Government will commit to ensuring that “may” becomes “must” so that the pledge to ensure the parity of social tenants with private tenants is honoured?

While faulty electrical installations can cause fires, so, too, can faulty electrical appliances, as was tragically the case in the Grenfell Tower fire. I have previously drawn attention to regulatory deficiencies regarding the safety of electrical appliances. For example, shopkeepers are responsible for the safety of electrical products they sell whereas, under current legislation, online marketplaces are not responsible for the safety of products sold by third parties on their platforms. Again, unfortunately, my amendment to the then Building Safety Bill to rectify this did not find government favour. Yet, with more and more electrical appliances being bought online and evidence that, in London at least, a disproportionate number of electrical fires happen in social homes, the Bill could be a vehicle to address this issue. Will the Minister have another change of heart and consider doing so?

I recognise that some progress is being made. The Government state in paragraph 89 of the consultation paper, previously referred to, that there should be at least a legal requirement for the regular testing of those electrical appliances that are provided by social landlords. Given the clear intention of the Government to do that, can the Minister explain why there is no enabling clause in the Bill? Will he agree to bring forward an appropriate amendment to ensure that there is?

Finally, as many other noble Lords have done, I turn to energy efficiency, so powerfully referred to by the noble Baroness, Lady Hayman, just now. Not least in the current energy crisis, one of the most important ways of improving social housing is by improving the energy efficiency of such properties, thus reducing energy bills and excess winter deaths, and improving the quality of life for residents. As the Minister knows, I have frequently raised the issue of the need for a coherent national plan for energy efficiency in all forms of tenure; this is supported by many organisations. As we know, the Building Back Britain Commission has argued that energy bills could be reduced by £200 every single year just by improving a home’s energy performance certificate rating from D up to C.

As others have done, we recognise that the retrofit industry is needed to deliver this and the Government’s oft-repeated target of getting all fuel-poor homes to EPC band C by 2030, and all others there by 2035. Having been let down so many times, the industry says that it would be much more likely to invest in equipment and training with the certainty provided by putting those targets into legislation. Yet the Government have repeatedly refused to do this; frankly, I still fail to understand why.

More specifically, as we have heard in relation to social housing, in the Heat and Buildings Strategy published last October, the Government said:

“We will … consider setting a long-term regulatory standard to improve social housing to EPC band C, with levers required to decarbonise the stock in line with Net Zero”.


As others have pointed out, the strategy continues:

“We will consult the sector before setting any regulatory standard”.


I join others in expressing real concern that that consultation has not yet started. I hope that the Minister will be able when he winds up to explain why not and tell us when it will commence.

Can he also explain what the legislative process will be to introduce the necessary new regulatory standards once agreement on them has been reached? Surely this Bill is an ideal vehicle for doing so, and an amendment to achieve that would be very welcome. While welcoming this overdue Bill, I believe that there are several missed opportunities, which I hope will be rectified during its passage through your Lordships’ House. I look forward to the Minister’s response.

Social Housing (Regulation) Bill [HL]

Lord Foster of Bath Excerpts

Committee stage
Tuesday 6th September 2022 Lords Chamber

[Lord Bourne of Aberystwyth (Con)]

My Lords, it is a great pleasure to follow the noble Baroness, Lady Hayman, and to support her in this amendment, along with the noble Lord, Lord Foster of Bath, who has also added his name to it. I declare my interests as published in the register. I am also a member of Peers for the Planet. It sounds like saying that I am a member of Alcoholics Anonymous, not that I have ever had to do that. This is an extremely important amendment.

As has been noted, at Second Reading there was very strong support from around the House for the Bill’s objectives, and I am clear that that will remain the case. There is also strong support from around the Committee for the Government’s commitment to achieving net zero, and for the work of the Committee on Climate Change. What we need to do, through this legislation, is provide some heft to that commitment, because what is lacking, as the noble Baroness noted, is a road map to take us to the very noble aim of net zero. As the noble Baroness, Lady Pinnock, rightly said, since Second Reading, it has become even more evident how important this is—in very graphic terms, with the eye-watering price of energy and energy security centre stage following the dreadful situation in Ukraine. I think that is recognised by the incoming Prime Minister, but I say to the Minister, who has a long list of things to take up with the incoming Prime Minister and Ministers, that this is an opportunity for a very early demonstration of this Government’s commitment to tackling this very serious issue by tackling not just climate change but the energy security issue and, not least, the eye-watering cost of energy that we face currently.

At this juncture it is clear, as clear as it can be, that any action to reduce energy demand is sensible and vital. As is often said, the energy that is cheapest is the energy that we do not use. One thing we can perhaps take some comfort from, in a slightly bizarre way, is that we have got more ground to make up in this country than many other countries in relation to energy efficiency. There is a lot we can be doing; there is massive scope for energy efficiency and, indeed, for demand reduction, which this amendment is geared to. By reducing energy demand, we contribute to the fight for net zero, we contribute to helping ease the massive cost of energy and we also contribute to our energy security. These three pillars are all vital in this battle, and this amendment—a very modest amendment, really—would contribute to all three. The commitment to the low-carbon heat target of 100% of new installations of heating appliances and a minimum EPC rating of C for all social housing is, I believe, achievable and vital.

I appeal to the Government to come forward with a positive programme of engagement with social housing landlords, and advice, also very sensible and provided for in this amendment. I am sure it would have support from all corners of the Committee and would contribute in a very positive way to something that we know our country needs to do. I trust that the Government will demonstrate their commitment to net zero, to easing the cost of energy and to achieving energy security by supporting this amendment. It is a practical, pragmatic, sensible response to the energy crisis, will be seen as such, and will be seen as an early demonstration of the commitment of this Government. So I hope that is what the Minister will say when she responds to this group of amendments.

[Lord Foster of Bath (LD)]

My Lords, I begin, as I did at Second Reading, by reminding noble Lords that this Bill is part of the response to the Grenfell Tower fire. Yet again, I offer my condolences to the families and friends of those who lost their lives in that dreadful tragedy. I support all the amendments in this group, including Amendment 21, which carries my name alongside those of the noble Baroness, Lady Hayman, and the noble Lord, Lord Bourne, both of whom have done excellent work in these areas over several years. I also support the amendments from my noble friends Lady Thornhill and Lady Pinnock, and of course I particularly support the amendment from the noble Lord, Lord Best, whose work on housing over many years has been inspirational.

Millions of families live in social housing. They are often the least well off and impacted the most by the current rocketing energy prices. We have something like 15 million homes, across all forms of tenure, that are below energy performance certificate band C; in other words, we have 15 million homes that are inadequately insulated, and many of them are in the social housing sector. As a Times article said a week ago:

“Our latest analysis, published today in partnership with economists at the CEBR, underlines the scale of the growing energy efficiency divide in Britain. From October, the two thirds of households living in homes rated below the government’s target EPC C rating, are set to pay £748 more per year for their energy than the third living in homes at or above the threshold.”


As the Minister knows, I have, through two Private Members’ Bills, one of them still awaiting a Committee stage—I hope she might help me out with that—and amendments to other pieces of legislation, frequently raised the need for the Government to place their own already agreed targets for improving energy efficiency into legislation to give the industry, so badly let down by previous schemes, the confidence it needs to invest in the technology, skills and equipment to achieve this. Like the noble Baroness, Lady Hayman, and others, I have tabled amendments to the Energy Bill to seek to achieve that.

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Amendment 52, also in my name and that of my noble friend Lady Thornhill, tries to add to the Bill a simple review. I am surprised it is not included already, because a review of the impact of a regulatory Bill would surely be part and parcel of what is included. All the amendment asks is that, after a year, a review is carried out and an assessment made of whether the Act has achieved what it set out to do. If we never check that the legislation that we pass has the impact that we set out to achieve, then we continue to make mistakes. I hope that this very straightforward and simple amendment will be accepted by the Minister when she responds. With those comments, I beg to move Amendment 5 in my name, and look forward to the debate on other issues in this group.

[Lord Foster of Bath (LD)]

My Lords, the various amendments in this grouping are largely about monitoring, reviewing and assessing. I am very supportive of all of them, particularly the requirement in the first amendment from my noble friend on the Front Bench that there be an assessment of the sufficiency or otherwise of social housing stock in this country. I place on record how much I agree with her about the way in which such properties are built. We should ensure that many of them are built in such a way that gives an opportunity for people to live longer in their homes. There are some very simple issues that could be taken on board, such as ensuring a reasonably thick wall going up staircases so that stairlifts can subsequently be attached to them, which is rarely done at present.

Having said that, my Amendment 12 in this group concerns a somewhat niche but important issue relating to safety within social housing. It is an issue I have raised on a number of occasions, and I now have an opportunity to praise the Government for doing nearly everything that I want. My amendment seeks to persuade them to go that final bit further to achieve everything that I hoped to achieve.

During the passage of the then Building Safety Bill I drew attention to the large number of property fires caused by faulty electrical installations or appliances, some with devastating consequences. I pointed out that in the privately rented sector it is already mandatory to have safety checks on electrical installations every five years, but that there is currently no similar requirement in the socially rented sector, despite the social housing charter specifically stating:

“Safety measures in the social sector should be in line with the legal protections afforded to private sector tenants.”


I moved an amendment to that Bill to try to rectify this but, sadly, it was rejected by the Government on the grounds that it would lead to an added burden on the new safety regulator and would

“distract it and hinder its success.”—[Official Report, 29/3/22; col. 1403.]

However, I am delighted that, in a very short space of time, there has been a welcome change of heart by the Government following their own working group concluding that five-yearly checks on installations in social housing should take place. That is reflected in Clause 10 of this Bill, which amends Section 122 of the Housing and Planning Act 2016 to extend it to all landlords, thus including social landlords. It is a measure that I applaud. A consultation, which ended just a few days ago, has already taken place to consider the details of how such measures should be introduced. I welcome that.

The great thing is that the Government have even gone one stage further. They have clearly now decided that five-yearly checks will definitely go ahead in the socially rented sector, because paragraph 81 of the call for evidence of that consultation says:

“The government acknowledges the support of the Working Group for this proposal and agrees with the proposal to mandate five-yearly checks of electrical installations.”


It is now clear that the Government will go ahead and it is merely the details of how the scheme will work that have to be finalised.

Even at Second Reading I was pleased with all this, although the consultation had not taken place at that time, nor had we had that final statement that we would be going ahead. However, I pointed out that

“a careful study of Clause 10’s proposed way of achieving”

the five-yearly checks

“by amending Section 122 of the Housing and Planning Act 2016—reveals that the Secretary of State does not have to make any changes; merely that he may do so.”

I asked the then Minister—the noble Lord, Lord Greenhalgh —to give me an assurance that

“following the consultation, the Government will commit to ensuring that ‘may’ becomes ‘must’ so that the pledge to ensure the parity of social tenants with private tenants is honoured”.—[Official Report, 27/6/22; col. 459.]

Very sadly, although I was told that the Government

“would not be putting those powers in the Bill if we were not very serious in our intention to level up between private and public housing”,

he nevertheless declined to accept my proposal to change “may” to “must” and said:

“I know that he, in exhorting me to move from ‘may’ to ‘must’, recognises that we do not want to pre-empt the consultation on electrical safety measures for social housing.”—[Official Report, 27/6/22; col. 468.]


The consultation has now made it clear that the Government will go ahead but will be guided on the details of how they do so as a result of the consultation. Therefore, I now have a new amendment, Amendment 12, to deal with concerns about pre-emption by saying that the Government would have one year after the consultation before they must bring forward the required regulations. It no longer pre-empts the consultation. It would enable the Government to develop regulations to cover the details around implementation over the coming year. At the same time, it would ensure that the legislation required the much-needed and, as I am sure the consultation responses already show, widely supported introduction of mandatory five-yearly checks on electrical installations to take place in the socially rented sector. We nearly got there; on this occasion, I hope that we will have the Minister’s support for this amendment.

[Baroness Jones of Moulsecoomb (GP)]

Very quickly, I will speak to Amendment 5, but I support others. I am a big fan of social housing. I grew up in a council house in the 1950s and 1960s and my parents thought they were the luckiest people alive to have a new council house. It was a very happy home. These days, social housing is in very short supply, partly as a result of all sorts of population changes but also because of the Government’s very badly thought through right-to-buy policies. Somehow, we have to mop this up.

The Green Party’s 2019 manifesto committed to fund councils to deliver more than 100,000 new social houses per year

“through sustainable construction, renovation and conversion”.

That is the scale of the solution needed to make local communities much more secure in their social housing. The Government have to remove the barriers that local authorities and social landlords face.

I will touch very briefly on freezing or limiting social rent increases. I very much feel that these rent increases need to be kept as low as possible—or frozen. The Government have to backfill the large gaps that this would leave in the funding for social housing. I also suggest a ban on evictions at the moment, because life is getting harder and harder. It seems downright unfair if the Government are going to pay energy companies £0.25 trillion to cap energy prices but, at the same time, pay nothing to social landlords to cap rents.

Social Housing (Regulation) Bill [HL]

Lord Foster of Bath Excerpts

Report stage
Tuesday 18th October 2022 Lords Chamber

[The Lord Bishop of Chelmsford]

My Lords, it is good to see this important Bill continuing its progression through this House. I begin by declaring my specific interests as the Church of England’s lead bishop for housing and as a beneficiary of the Church Commissioners.

I add my support to Amendment 1 in the name of the noble Baroness, Lady Pinnock. As the energy crisis unfolds, it is surely wise to address the issue of energy efficiency in the social housing sector in a systematic way, by including it as a fundamental objective. Many who live in social homes are among those with the lowest incomes, so they are already struggling to meet their energy bills right now. In addition to immediate relief and support, we also need to address energy efficiency to ensure true affordability in the long term.

Amendment 2, tabled by the noble Baroness, Lady Pinnock, would secure continued accountability on progress to remove dangerous cladding and the remediation of fire safety work—an important part of ensuring that a tragedy such as the Grenfell tower fire cannot happen again. As the Archbishops’ commission on housing, church and community rights states in its Coming Home report:

“The Grenfell victims and bereaved families deserve a profound change of culture in the housing sector to make the safety of residential housing stock an absolute priority.”


I also support Amendment 14, tabled by the noble Baroness, Lady Hayman. A government strategy setting out a plan of energy demand reduction for social housing will be a significant step towards reducing energy bill costs and meeting our net-zero targets. Our national commitment to net-zero carbon emissions by 2050 will be achieved only if we are intentional about building to high thermal efficiency standards.

I very much look forward to the Government’s response on these important amendments, and to working with noble Lords across all Benches to address this nation’s housing crisis. Clearly, there is consensus across the House on the importance of addressing the major problems we now face in our social housing sector.

[Lord Foster of Bath (LD)]

My Lords, I too am delighted to support Amendments 1 and 14, and the others in this group.

As we have heard from other speakers, we are in an energy crisis. Despite the welcome government support —we will be debating that in more detail tomorrow—it is the least well-off who will be hit hardest, many of whom live in social housing. As the noble Lord, Lord Bourne, has pointed out, one of the best ways of helping such people is by reducing their demand for energy in the first place, not least by improving the energy efficiency of their homes, reducing bills, reducing excess winter deaths, improving the quality of life and, as the noble Lord pointed out, increasing the number of jobs.

The Building Back Britain Commission argues that energy bills can be reduced by at least £200 every year by improving a home’s energy performance from level D to C. Many homes start at an even lower level, so the savings would be even greater. Improving the energy efficiency of social housing makes sense, so I am delighted that the Minister has agreed to support the amendment of my noble friend Lady Pinnock, which makes it a fundamental objective of the regulator to include reference to energy efficiency.

However, by itself, that does not go far enough. Amendment 14 fills the gaps, not least by requiring the Government to publish a strategy on reducing energy demand for social housing properties within 12 months of the Bill being passed, with appropriate consultation; requiring a programme to support social housing providers to encourage energy demand reduction; and, crucially, establishing in law a target which ensures that all social housing properties achieve EPC level C by 2030.

I have spoken many times in your Lordships’ House about the need to establish the Government’s own energy efficiency targets in law. I have argued that the retrofit industry that will deliver the Government’s energy efficiency targets, but which has been let down by numerous failed schemes, has lost confidence. The industry has shrunk and energy efficiency work has fallen dramatically. It is the industry itself that argues that to be persuaded to invest in research, training and equipment, it needs the confidence that putting targets into legislation would give.

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Social landlords must balance many competing pressures to ensure that tenants live in safe, decent and well-maintained homes. It is of the utmost importance that the standards we set are agreed through consultation with that sector. Although the noble Baroness’s amendment contains a requirement to consult, this is not on the standards themselves. Imposing overly burdensome standards may risk resources being diverted from other areas, such as cladding remediation or even, as my noble friend Lord Young of Cookham said, the supply of new housing stock.

[Lord Foster of Bath (LD)]

Can the Minister confirm whether the Government already have their own target in relation to the number of homes that should be brought up to EPC level C, including all fuel-poor homes and those in the social housing sector?